An Estonian particpates in exercise Hedgehog 25 — or Siil 2025 in Estonian — the operation saw 16,000 troops take part in a sweeping, multinational defence drill that spans the entire country, one of the largest NATO exercises hosted by Estonia. (Image: NATO)

Estonia’s Defence Commitment: €10 Billion by 2029

By
Share with your friends

Estonia’s Minister of Defence Hanno Pevkur has formally approved a development plan allocating more than €10 billion over the four‑year period 2026–2029 to strengthen Estonia’s defence capabilities. According to Estonian intelligence leaders, NATO must deter Russia for the next 10–20 years, and that sustained defence investment is essential.

The Estonian national defence budget for 2026 alone is projected at around €2.4 billion, with cumulative spending expected to exceed the €10 billion threshold. This long‑term funding increase follows Estonia’s move to raise spending to above 5 % of GDP, averaging 5.4 % through 2029—up from about 3.4 % previously. The plan is consistent with Estonia’s goal to boost deterrence and cohesion with NATO allies.

Infrastructure Investments: €470 Million

Roughly €470 million is earmarked for defence infrastructure projects, managed by the Estonian Centre for Defence Investments (ECDI). Key initiatives include:

  • Development of the Baltic Defence Zone, a trilateral defence line with Latvia and Lithuania featuring anti-tank lines, bunkers, and mobility barriers—construction began in Estonia in June 2025
  • Expansion of the Nursipalu training area, including Camp Reedo near the Russian border, capable of housing up to 1,000 allied troops and tripling in size to about 10,000 hectares.
  • Building a new complex in Narva, fortifying the eastern border zone.
  • Establishing a forward command post for a corps‑level unit.
  • Continued expansion of Reedo barracks as a strategic staging and training location.

Personnel and Force Structure Reforms

The plan commits to major enhancements in personnel, including:

  • Expanding the number of active service personnel and technical specialists. Current active force stands at ≈7,700 (about 3,500 conscripts), with reserves exceeding 230,000, including rapid‑response units.
  • Salary and allowance increases for serving members, plus improved support systems for reservists and conscripts.
  • By 2026, the operational wartime size is anticipated to increase beyond 24,400 personnel, supporting NATO interoperability.

Defence Minister Pevkur underscored that these reforms will make the Defence Forces “more modern, with better situational awareness, weaponry, training, and ammunition”.

Capabilities & Armament Acquisition

A Portuguese Air Force F-16 Fighting Falcon takes off during a Baltic Air Policing Rotation in Estonia. (Image: NATO)

Approximately €5 billion of the total will be devoted to ammunition stockpiles, securing readiness for sustained operations. Major procurements are planned in drones, deep‑strike systems (e.g. HIMARS, ATACMS), anti‑ship missiles, such as Blue Spear, and other unmanned aerial systems, with up to €150 million specifically allocated for drone detection, strike, and reconnaissance capabilities. Ongoing acquisitions include:

  • K9 Thunder self‑propelled howitzers (36 units in service, additional orders under modernization).
  • CAESAR 155 mm howitzers (6 delivered, up to 12 ordered).
  • M142 HIMARS rocket artillery (6 systems, deliveries ongoing) with munitions including ATACMS-range missiles.
  • Joint procurement of IRIS‑T SLM medium-range air defence systems with Latvia, ready by 2025.
  • Domestic acquisition of Otokar ARMA 6×6 and Nurol Makina NMS 4×4 armoured vehicles delivered starting January 2025.

Aligning with EU’s Readiness 2030

Estonia’s quadruple increase in defence investment aligns with the broader EU initiative “Readiness 2030”, which aims to mobilize up to €800 billion in defence capacity across member states. Estonia has applied for support under the EU SAFE fund, part of this wider effort to build European self-reliant military capability without depending solely on US aid.

Estonian intelligence leaders warn that NATO must deter Russia for the next 10–20 years, and that sustained defence investment is essential to credible deterrence.

Read More:

Must Read

×